Open Banking
min of reading
February 15, 2022

Open Banking Phase 3: Understand the background and what's new in step 3B

Luciana Bandeira
Developer Experience
I help developers with onboarding and API best practices to ensure the best Developer Experience. In my spare time I dedicate myself to books, researching (and tasting) desserts and I'm passionate about travelling.
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* in partnership with Nathalia Camargo and Fabrice Nunes

On 15 February 2022, another stage of the 3rd phase of the regulation of Open Banking comes into force: the so-called step 3B. During this period, financial institutions and payment initiators will be able to carry out TED/TEF transactions, even if they do not hold the bank account itself. 

But what does this mean?

From this moment on, the institutions participating in Open Banking will evolve the integration with the means of payment, including the possibility of purchase by TED/TEF directly through the digital platform of the establishment.

This means that you will not need to access your bank's app to make a payment, either via PIX (which is already available in Open Banking) or now also for the mode via TED/TEF, which will come into force from this new phase.

Background of the 3rd Phase of Open Banking

In the air since 29 October, the first version of the 3rd phase of Open Banking Brazil brings the payment service to the market using PIX. 

The consumer now has a new payment method that consists of, from an accredited establishment, consenting to the payment of a product or service, without the need to directly access the app of the bank of origin.

The payment cycle begins when the consumer, from an accredited establishment, requests payment via Open Banking, causing the initiator to receive this request, promote authentication and execute the payment process on behalf of the consumer. This way, the rest of the action is left to the conversation between the initiator and the payment holder.

An important point is that the payment business model, through Open Banking Brazil, ensures that no banking transactions are allowed without the consumer being aware of the use of their data. This consent is unique, its journey begins with the payment initiator, passes mandatorily through the consumer's approval, and through the validations proposed by the consent framework (following the guidelines of the General Data Protection Act) the transaction is released to the holder. 

At this stage, the initiators do the payment capture (examples are: Paypal, AME, e-commerce sites, among others) and inform the holder, who is responsible for managing the consumer's bank account. The financial institution processes the payment, following the banking structure of the institution according to the means of payment specified in the process, informs the initiator and passes the amount to the accredited establishment.

Thus, Open Banking assists in the connection between the customer and the financial institution (where the customer has an account) through the initiator (companies regulated by the Central Bank). With this, the amount is paid directly from the account of the Financial Institution Holder to the receiving account, an accredited establishment.

This phase will come into production in stages, as has occurred with the initiation of payment via PIX and recently via TED/TEF and in parallel with the other phases of Open Banking Brazil. The planning directed by Bacen, contemplates for the next stages the possibility of forwarding credit proposals, initiation of payments through other means of payment, such as bank draft and debit account.

The changes for FIs as they meet with Open Finance

For financial institutions at this moment, the greatest impact is to bring to data consent, already known in Phase 2, the function of payment authoriser, ensuring their customers greater flexibility and agility in choosing their means of payment and the accredited institutions, an additional option in the sale of products.

And it is in this scenario that Sensedia comes out ahead!

We have assembled a team of API experts, who have created one of the best Open Banking platforms. Our product caters for every consent machine and joins the dots of consumer-initiator-holder in a simple and connected manner.

Thanks for reading!